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The due date for filling income tax return for Individual for FY 2015-16 was extended up to August 5, 2016, there will be still few people who would have not filled their income tax return.

Individuals have to file their income tax return if their income in a financial year exceeds more than the exempted limit of Rs 2.5 lakh even if tax is deducted at source.

So if you missed the deadline, you can file a belated return. It can be filed by an assessee within two years from the end of the financial year to which this return pertains to. For example, for filing return for the year 2015-16, the next year - 2016-17- is the assessment year. Therefore, you can file return till March 2018.

The rule for filing belated return has been reduced to one year in this year's Budget. So for the financial year 2016-17, belated return could only be filed till March 2018.

In case of belated return where tax is due, the assessee has to pay interest @ 1% per month. If the assessee even fails to file a belated return within the stipulated time, the tax officer can levy penalty of Rs 5,000 on his discretion.

An assessee forgoes following benefits in case of late filing of return:-

1.      You can't carry forward your capital losses to set off with future capital gains.

2.      In case belated return where refund is due, interest will only be paid from the date of filing of tax return, till the refund is paid to you. You will not get any interest for the period of delay.

Please contact http://www.nriinvestments.in/ if you need any assistance in income tax return filling in India.